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An Entrepreneur is one who has a dream and builds an organization to achieve it. Joseph A. Schumpeter had described an entrepreneur as a person who carries out new combinations, which may take the form of new products, processes, markets, organizational forms, or sources of supply. Another more recent definition states that "entrepreneurship is the creation of organization."
There are 3 ways where we can classify a person as an entrepreneur. The most conventional way is that an entrepreneur develops a new product or a new idea and builds a business around the new concept. A substantial amount of creativity and an ability to see patterns and trends before they are apparent to the general public is required. It is possible for the business concept to be new and revolutionary that it creates an entirely new industry. A good example of creative entrepreneurs include one of the founders of Apple Computer and NEXT, Steve Jobs and Bill Gates, the founder of Microsoft.
There are also individuals who start new businesses based on old concepts. For instance, if someone opens a fast food outlet, the idea is not new and the founder may not be described as innovative, but the business still represents a financial risk to the owner, and the person is developing something where nothing previously existed. Some may consider this person as an entrepreneur and some may disagree due to the lack of creativity and innovation involved. However, the individuals that start of businesses like this often do so with some change being introduced. With that being the case, most entrepreneurs who start a business to compete with the existing ones, do so with hope that theirs will offer something new and better.
Another way to classify an entrepreneur is if they have an existing business and an existing concept. This is where a person who is less innovative because he buys an existing business without many or any plans to change the company operations. Here, there is less need for creativity and innovation but the person is considered taking a personal and financial risk: making that person an entrepreneur.
Founder of AirAsia, Tony Fernandes falls in the third category: existing business and an existing concept a new business based on an old concept. This is because he bought over AirAsia Berhad from DRB-Hicom. At the time of purchase, the airline was heavily-indebted. Tony took the risk of purchasing that airline and his risk paid off because now AirAsia is the leading low cost airline in the country. Apart from that, he has expanded his business to other countries and diversified his company into doing other fields apart from airlines.
There are many types of entrepreneurs where it can be classified into the basis of type of business, use of technology, motivation, growth, stages in development and others. Business entrepreneur is a person who converts their ideas into reality. This includes dealing with both manufacturing and trading aspect of business. For example, small trading and manufacturing business. Trading entrepreneur is a person who undertakes trading activities and concerned with marketing, trying to break into both domestic and international level. Industrial entrepreneur is a person who undertakes manufacturing activities only with involvement in new product development. For example, textile and electronics. Corporate entrepreneur is a person who is interested in the management part of an organization like exceptional organizing and coordinating skills to manage a corporate undertaking. Example of corporate entrepreneur is Dhirubhai Ambani of Reliance Industries. Agricultural entrepreneur is a person who is involved in the production and marketing of agricultural inputs and outputs like dairy horticulture and forestry.
Under the use of technology, there are three classifications. Technical entrepreneur is a person who is production oriented. She/he also possesses innovative skills in manufacturing and quality control. In contrary to that, there is also a non-technical entrepreneur who develops marketing, distribution facilities and strategies. Professional entrepreneur is a person who uses the proceeds from sale of one business to start another business.
As for motivation, there are pure entrepreneurs, induced entrepreneurs, motivated entrepreneurs and spontaneous entrepreneurs. Pure entrepreneurs are motivated by psychological and economic rewards. Induced entrepreneurs are motivated by incentives, concessions and benefits offered by government for entrepreneurs. Motivated entrepreneurs are motivated by the sense of achievement and fulfillment. Spontaneous entrepreneurs are born entrepreneurs with inborn traits of confidence, vision and initiative.
In terms of growth, there are two types of entrepreneurs, growth entrepreneurs and super-growth entrepreneurs. Growth entrepreneur is a person who enters a sector with a high growth rate where else super-growth entrepreneurs is a person who enters a business and shows a quick, steep and upward growth curve.
In terms of stages in development, there are first generation entrepreneurs, modern entrepreneurs and classical entrepreneurs. First generation entrepreneur is an innovator, risk taker and among the first in the family to enter business. Modern entrepreneur is someone who considers feasibility of business which can adapt to change and dynamic market. Classical entrepreneur is someone who gives more importance to consistent returns than to growth, giving concern more towards customer and marketing needs.
The definition of intrapreneurship is the initiative taken by employees in an organization to undertake new business activities. Intrapreneurship is related to corporate entrepreneurship but these concepts differ in the following sense. Corporate entrepreneurship is usually defined at the level of organizations and refers to a top-down process. On the other hand, intrapreneurship relates to the individual level and is about the bottom-up, pro-active work-related initiatives of individual employees. Intrapreneurship is one of the types of entrepreneurship therefore sharing many key characteristics such as taking initiative, looking out for opportunities and some element of new ideas. Intrapreneurship also belongs to the field of employee behavior that is limited by the corporate hierarchy and intra-organizational context. Activities related to intrapreneurship include opportunity perception, idea generation and designing a new product or another recombination of existing ideas.
An intrapreneur's primary motive is to gain freedom and access to corporate resources. They are also goal oriented and self-motivated but also responds to corporate rewards and recognition. This differs to the motives of a traditional manager who is power motivated. Intrapreneurs are adept at getting others to agree to his or her private vision. Contradicting to this, a traditional manager would agree with authorities in power rather than standing firm to what they envision. An intrapreneur's time orientation is in the long term with an estimation of 3-15 years depending on the type of venture. This is because they have the urgency to meet self-imposed and corporate timetables. Action wise, intrapreneurs has a bias for action. They may know how to delegate tasks but when necessary does what needs to be done according to priority. Intrapreneurs do their own market research and intuitive market evaluation like the entrepreneur. An intrapreneur has more business judgment than managerial or political skills. They are often technically trained if in the technical business field so they may need assistance to prosper. The education level of an intrapreneur is often highly educated in technical fields, sometimes not.